Chapter 3185 Dumping Market

Put off the case.

Ericsson has been unable to get money.

The longer the delay, the more anxious Ericsson becomes.

At that time, in order to reduce the loss of their own interests, they can only make moderate compromises and concessions. Getting less benefit is better than getting nothing at all. At that time, Ziweixing's self-developed chips can legitimately go to sea and conquer the Indian and Pakistani subcontinent.

Doing this is actually a bit against business ethics.

But the business market is the law of the jungle, and morality is the disguise of the winner after the jungle.

Apple and Samsung were also sued by Ericsson.

Same infringement.

It’s just that Apple and Samsung have different strategies and are in different regional environments.

Apple does not make low-end or mid-range phones.

The Korean market is too small to support Samsung's self-developed chip business, and Samsung's self-developed chips are not much worse than Qualcomm, ranging from low-end chips to high-end chips. If Samsung wants to keep its chip business, it must go overseas and compromise with Ericsson.

Aisda's biggest advantage is that the domestic market is large enough!

Even if overseas markets are restricted by Ericsson, at least there is still room for self-developed chips to survive in the local market. Whether it can work or not has nothing to do with the outside world. It mainly depends on yourself. It depends on how effective the self-developed chip is and whether it can be implemented.

So far, the effect is okay.

There is no big problem when used on low-end machines priced below 1,000 yuan. Compared with other low-end chips on the market, Asda's self-developed chips have the disadvantage of higher heat generation and power consumption. The advantage is that it has stronger computing power and can provide a smoother user experience for mobile phones.

Zhou Shaoning said: "Strategically speaking, we are richer than Samsung. We also have a copycat phone business. Of course, this is all related to your layout. This gives us more choices when facing external pressure. There are more countermeasures in place.”

"Copycat phone?" Zhou Buqi really didn't pay much attention to this matter. "How's it going?"

Zhou Shaoning smiled and said: "It's very good. It has opened up daily life in Nigeria. The first smartphone launched is equipped with Asda's self-developed chip. It sells for US$99. It is very popular in the local area. It can be said that it is the right choice for the country." The local mobile phone market has had a huge impact.”

"99 US dollars?" Zhou Buqi couldn't help but wonder, "Is this the cheapest smartphone in the world?"

Zhou Shaoning said: "That's true, so it exploded in the local market as soon as it went on sale. The cheapest local smartphone costs more than 180 US dollars, and the prices of many products are higher than in China, so that the most popular ones there are actually second-hand ones. Smartphone.”

"It's true."

Zhou Buqi nodded.

Not only are mobile phones second-hand, Africa is in a state of extreme poverty and many aspects of food, clothing, housing and transportation are second-hand. But local people may not know that, for example, many second-hand clothes are not much different from new clothes after simple ironing. Collect them in China for free or buy them for a few dollars, and then ship them to Africa and sell them at low prices. Big sales of 2 US dollars or 3 US dollars a piece are a profitable business with several times the profit.

Zhou Shaoning said: "There are many second-hand mobile phone businesses in China, but the domestic market is not big. There is no second-hand space for Android phones, and a small number of users will buy second-hand Apple products. Most of the second-hand recycling is basically shipped to Africa. . For the African market, smartphones are generally too expensive and can only be bought second-hand.”

Zhou Buqi smiled and said: "For $99, it should be very lethal."

"Absolutely, the price is cheaper than a second-hand mobile phone, and it is the same price as a feature phone. If we sell smartphones at a price lower than a second-hand smartphone and at the same price as a feature phone, it will soon open up the market. . After being sued by Ericsson, our chip business was restricted. Lao Yan was very aggressive and said that he would purchase 7.5 million more self-produced chips, so I don’t have to worry.”

Zhou Shaoning was very happy about this, and it could be said that it provided him with a strong guarantee. The road to self-developed chips is very difficult.

It’s just that it’s not enough after it’s developed. No matter how successful the products in the laboratory are, they are not convincing. It must be implemented and there must be a market. Only through market testing can smaller problems be discovered and greater technical improvements made.

Not even other markets will work.

The African market, which relies only on the domestic market and copycat phones, is enough to support the survival of self-developed chips. No matter how powerful Ericsson is, it is impossible to send the indictment to Africa, where it is difficult to survive, let alone the protection of intellectual property rights.

The most important thing is that African users are very poor and have not used good mobile phones.

Even self-produced chips have many shortcomings.

It’s enough to sell it to black brothers who I haven’t seen much! They're not that picky!

What’s more, the price is so affordable!

"With the selling price of $99, there is no profit, right?"

Zhou Buqi can predict that in the early stages of development, the main focus will be on establishing the brand and expanding the market.

"There shouldn't be much profit margin. I've seen their purchase orders, and the material cost should be more than 60 US dollars." Zhou Shaoning laughed, "100% domestically produced, all spare parts, development, design, assembly, and production are all done in It is made domestically. If it works well, there may be some profit margin. After all, there is no competition in the African market, so there is no need to spend a lot of money on marketing like in China.”

"60 US dollars... isn't this only 400 Chinese coins? Can you assemble a mobile phone with such a small amount of money?"

Zhou Buqi was somewhat surprised.

Maybe once the African market is launched, it will be profitable!

The material cost is $60, and the rest is employee salary expenses, transportation costs, taxes, marketing costs... At least if we increase the volume to reduce the marginal cost, it may be profitable!

"Almost. The shell and other things are all made of plastic, and some leftovers are purchased from various warehouses. I think they are doing very well. Old Yan seems to be ten years younger. There are two young secretaries around him, who are about the same age as his daughter. He found them from the medical school."

Zhou Shaoning shook his head and felt that Old Yan's lifestyle was really bad.

He is still not calm at his age.

Zhou Buqi was a little embarrassed about this. Old Yan's daughter is now a secretary in his office. Although he has never done anything to her and still treats her as his niece, the little girl is very crazy and seems to have taken advantage of Uncle Zhou.

This makes him very embarrassed.

Old Yan keeps calling for him to become his in-laws.

Out of personal relationship, Zhou Buqi couldn't keep his daughter in the cold palace for a long time.

Forget it!

Let's take it one step at a time!

Zhou Buqi said seriously: "Old Yan's health is not very good. After all, he is old, has high blood pressure, and diabetes. He should not have hired a secretary, but two nurses to take care of his body. Sometimes when he works, he may forget to take medicine or something. It's not a bad thing to have two careful people to take care of him."

"Yeah, that's right."

Zhou Shaoning laughed. The big boss had no objection, so he naturally couldn't say anything. After all, these are all trivial matters. As long as Old Yan can do the business of copycat phones in Africa and develop a large dumping market for domestic low-end phones, it's not an exaggeration to say that he is a national hero.

Zhou Buqi sighed and said, "Li Zairong will come here soon. How should we talk about this?"

Zhou Shaoning smiled and said, "Maybe there is a chance to join forces to counter Ericsson, and maybe we can prevent Ericsson from going to Latin American countries to cause trouble next."